Under the Obama administration, the motto “work hard, play harder” is continually being redefined to “work hard, pay harder”. According to The Wall Street Journal, a new plan is being finalized that will allow millions of low-income Americans to slash their monthly student-debt bills, in turn raising taxpayer costs for the government’s mushrooming student-loan portfolio. This week the Education Department proposed to expand eligibility for the Pay As You Earn program, which sets borrowers’ monthly payments as a small share of their income.

Education Department officials report that six million more Americans will become eligible this autumn for PAYE. The program caps monthly loan payments at 10 percent of discretionary income, defined as the amount above 150 percent of the poverty level. Well-paid graduates and those working minimum-wage jobs will be paying equivalent proportions of their income towards their student debt. While low-income borrowers who have incurred an unusually large federal debt reap the benefits of the revised program, a majority of college graduates and taxpayers will continue to suffer.

With a current outstanding student debt of $1.2 trillion, the White House continues to give people an economic incentive not to repay a loan. Because these loans are issued regardless of the borrower’s ability to repay, opponents of PAYE say the loans fund basic living expenses with tens of thousands of borrowers consuming aid even when they’re not enrolled for courses. Universities have also taken advantage of the flawed program, offering to pay student’s monthly bills under PAYE while simultaneously raising tuitions. The loans are turning into six-figure grants, debts the taxpayers incur.

Is the Obama Administration setting a double standard, promoting income equality, yet essentially paying young people not to pursue higher incomes? Is PAYE a program that allows those enrolled to take advantage of the system, while punishing those who work hard for their money?

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

If you're a recent college graduate, chances are you’ll have to start paying off your student loans sooner than you think. And even with the economy in a slump, don’t expect a free pass on not paying your loans. Are you starting to panic? Well, don’t! There’s a ton of advice out there to help students stay on track and courtesy of the U.S. News and World Report, here are seven tips for repaying your student loans.

Repay you student loans automatically. Make things easier on yourself by setting up automatic withdrawals from your bank account. This reduces the chance of late or missing payments.

Aim for 10 years. The traditional repayment period for student loans is 10 years and ideally you'll be able to pay off all your debt within that time period. If you end up struggling with your monthly payments, however, you could stretch out your loans to 20 or even 30 years. Your monthly payments will become more manageable but you will end up paying a lot more in interest.

Contact the Federal Student Aid Ombudsman. Sometimes your relationship with a lender can go belly-up. If you end up in a dispute, the Federal Student Aid Ombudsman may be able to help resolve the issue.

Are there any tips you'd like to add? Share your suggestions in the comments section.

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

The financial aid process can be a daunting one but if you're planning on attending college any time soon, you should know that there are tons of federal student aid options available. From Pell Grants to Perkins Loans to the FAFSA, the funding is out there but your eligibility to receive aid depends on your level of need and, subsequently, how much aid you are eligible to receive. Translation: For the majority of students, loans are inevitable. But don't fret just yet because President Obama announced the Student Aid Bill of Rights initiative to help student borrowers with the challenging student loan process.

What it does:

Helps borrowers keep track of their student loans. For years, consumer groups and colleges have been warning that borrowers with more than one servicer are losing track of their loans — and winding up in default as a result. The Education Department acknowledged those concerns last fall, when it adjusted some institutions' "cohort default rates," or the share of borrowers who default on their loans within a certain time frame.

Make it easier for borrowers to file complaints involving their student aid. Right now, borrowers can file complaints with a variety of agencies, including the Consumer Financial Protection Bureau, the Department of Veterans Affairs, and the Defense Department. But there isn't a centralized website where all borrowers can lodge their grievances against lenders, servicers, debt collectors, and colleges.

What it doesn't do:

Prevents students from overborrowing in the first place. Many of the challenges that student-loan borrowers face in loan repayment are the result of unmanageable debt. After all, if borrowers could afford their loan payments, they wouldn't have to turn to income-based repayment or deal with debt collectors.

Overhaul student-loan debt collection. They want the government to handle debt collection itself. But the president's plan merely talks of "raising standards" for student-loan debt collectors, and it’s pretty vague about what those higher standards would look like.

For more on the president's Student Aid Bill of Rights, head over to The Chronicle of Higher Education. . What do you think of the president's attempt to ease the financial burden associated with student loans? Share your thoughts in the comments section. And don't forget, going to college doesn't have to break the bank! Check out our Financial Aid section for more info on federal funding and while you're there, conduct a free college scholarship search where you'll get match with countless scholarships, grants and other financial aid opportunities!

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

With all the media attention on the student loan debt crisis and how universities continuously hike tuition, we have to ask: Which schools are worth the outrageous sticker price of about $200,000? According to PayScale.com's annual survey of colleges with the highest return on investment (ROI), Harvey Mudd College tops the list with a 20-year net ROI of $985,300.

PayScale.com’s data is pulled from 1.4 million pay reports from persons who obtained bachelor's degrees in the last 20 years. For more on the methodology, click here. Check out who made the cut below:

Did any of your top choices make the list? If not, would you consider a college based on its ROI? Share your thoughts in the comments section. And don’t forget that even affordable college tuition can still be expensive! Try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search where you'll get match with scholarships, grants and other financial aid opportunities that are unique to you!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

New research suggests that earning a college degree is no longer the surest ticket to the middle class. "'Ticket' implies a college degree is something you can just cash in," said Alan Benson, assistant business professor at the University of Minnesota. "But it doesn’t work that way. A college degree is more of a stepping stone, one ingredient to consider when you’re cooking up your career...It’s not always the best investment for everyone." Benson, along with MIT’s Frank Levy and business analyst Raimudo Esteva, co-authored a new paper examining the value of public university options in California. They found that factors like how long it takes to complete a degree and whether students even make it to graduation can significantly diminish the value of pursuing higher education. Unsurprisingly, the study also found that students who take out loans and don’t graduate on time incur much more debt. All in all, Benson concluded that the investment of a college education is generally better for those who graduate – on time – from a school with healthier resources. (For more on their research, click here.)

Do you think that a college degree is necessary for gainful employment and upward mobility? Share your thoughts in the comments section. And don’t forget to try and fund your education with as much free money as possible – a great place to start is by visiting Scholarships.com and conducting a free college scholarship search where you'll get match with scholarships, grants and other financial aid opportunities that are unique to you!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

With a new year comes a new Congress under new-ish management. Republicans will control the Senate for the first time in eight years, while the House of Representative will have its largest Republican majority in since 1928. But what does any of that have to do with higher education? Here are five predictions, courtesy of The Chronicle of Higher Education:

Gridlock will continue. The gridlock and partisan warfare that we've seen in recent years will continue...and is likely to worsen as the 2016 election approaches. By the fall, the prospects for compromise on major legislation – education or otherwise – will be dim.

Funding will remain tight. Budgets won’t change much, especially once the latest round of across-the-board spending cuts (known as the sequester) is applied. In that context, the most colleges will be able to hope for are modest increases for research and student aid; most programs will have to fight just to keep level funding. The Perkins student loan program, which is set to expire in September, will be particularly vulnerable. If government accountants conclude that continuing the program would cost taxpayers, lawmakers may abolish it.

Colleges will have to compete for attention. Republicans have laid out several priorities for 2015, including overhauling President Obama's new healthcare system and approving the long-stalled Keystone XL pipeline. Renewal of the Higher Education Act – the main law governing federal student aid – is not among those priorities.

Simplification will rule the day. In the Senate, Lamar Alexander of Tennessee has drafted legislation to shrink the FAFSA to the size of a postcard and to reduce the number of grant and loan programs. Meanwhile, House Republicans have offered a road map for reauthorization that calls for "one grant, one loan, and one work-study program" and just two loan-repayment programs.

For-profit colleges will breathe a little easier. Republicans aren’t likely to single out the sector in the way Democrats have. Rather, they will seek to apply any accountability regimes to all colleges.

For more on their predictions, click here. Any you'd like to add? Share your thoughts in the comments section. And don't forget to create a free Scholarships.com profile for a list of scholarships that are personalized to you!

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Will these updates help me? If you have federal student loans, maybe. Starting in 2015, borrowers who took out loans before October 2007 or stopped borrowing by October 2011 will be eligible to take advantage of the Pay As You Earn Repayment Plan. Government officials estimate this includes an additional five million people.

How much could I save? Now, most federal loan borrowers are eligible for income-based repayment – a different repayment plan that has the same premise as Pay As You Earn. Unlike Pay As You Earn, however, IBR caps payments at 15 percent of one's disposable income and forgives the balance after 25 years of payments. Those differences could mean a lot, both in monthly payment amount and in the total amount paid over time.

Didn't the president mention loan refinancing too? He did, but in relation to a bill that Massachusetts Senator Elizabeth Warren introduced last month called the Bank on Students Emergency Loan Refinancing Act. This legislation would allow federal and private student loan borrowers with older, higher interest loans to consolidate them within the direct loan program at today's lower fixed interest rates. That bill still has to pass both the Senate and the House, something that may not happen because Republicans are opposed to paying for the bill with a gradual increase in tax rates for those in the higher income brackets.

What else should I know? There is still a long way to go before the president's executive action takes effect: December 2015 is the target implementation date. The overall plan includes quite a few other ideas that will make a difference to student loan borrowers, like improving financial incentives for federal student loan servicers to help borrowers stay out of default, making it easier for active-duty military to receive benefits and increasing communication partnerships with entities such as the IRS and tax companies to ensure consumers are aware of their higher education rights and benefits.

What do you think of the president's attempt to ease the financial burden associated with student loans? Let us know your thoughts in the comments section. And for more information on federal funding, visit our Financial Aid section.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

When it comes to paying for a college education, it seems as though students have two options: deal with impossibly high payments while they're in school or crippling debt for years afterwards. Well, Oregon students were provided a third option last year when legislators approved the Pay it Forward plan that would allow students to attend state colleges without paying tuition or taking out student loans but would instead commit a small percentage of their future incomes to repaying the state. It turns out, however, that said plan isn't the saving grace for college students afterall.

Pay It Forward does not account for non-tuition costs like room and board.

Students who generally rack up the most debt – those at for-profit and private nonprofit institutions — would not be eligible for the program.

The program would have “enormous” start-up costs.

Early estimates suggest that Oregon would have to take about 3 percent of a former student’s earnings for 20 years for it to work. With that being said, what are your thoughts on Pay It Forward? Do you think it’s too soon to tell if this is a viable option for other states to adapt?

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

Figuring out how you're going to pay for your college education can be intimidating. No one wants to pay off student loans for the rest of their lives, full-tuition scholarships are rare and federal student aid seldom covers all college costs, so considering a community college to curb the financial strains is smart! But attending a community college doesn't necessarily dismiss the likelihood of defaulting on your student loans: According to the most recent cumulative default rates, the percentage of two-year public school students who default is 18.7 percent and 13.2 percent for students at two-year private and nonprofit institutions – that's more than double their four-year counterparts! If you're a community college student, check out
U.S. News and World Report's three tips you can follow to avoid defaulting on your student loans.

Think before you borrow. Just like your other obligations, a student loan is a commitment. You are responsible for repaying it whether you complete your education or not. By thinking before you borrow, you can help ensure the former comes true.

Maximize your federal financial aid. Contrary to popular belief, financial aid is available for community college students. And while you should think before you borrow, you can be less reluctant if you go with federal loans.

Stay in school. Maximizing federal financial aid can help community college students in an additional way: It can keep them in school if they run out money. Taking out student loans without going on to complete your program of study can lead to big repayment problems. So whether your goal is a formal credential from a community college or to eventually transfer to a four-year institution, it’s important to stay on target so you don’t end up with debt but no diploma.

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

If you're a recent high school graduate, chances are you're looking forward to the independence that comes with becoming a college freshman. And while anticipating all the excitement that comes with entering college – meeting new people, establishing a home away from home, etc. – establishing how you're going to pay for it is an entirely different story. Here at Scholarships.com, we encourage students to apply for scholarships early and often but taking out student loans might be inevitable. With that being said, knowing what questions you should ask your student loan servicer might ease the transition so check out the list of helpful questions that financial aid officers, student loan counselors and former lenders recommend you ask:

When exactly will my payments begin?

Do you have my current contact information on file?

What is my interest rate?

Is my interest rate competitive?

Is there any way to get an interest rate reduction?

Is consolidating my loans a good option for me?

How do I qualify for Interest-Based Repayment or Income-Contingent Repayment?

Do I qualify for an economic hardship deferment?

What happens if I lose my job?

If I go back to graduate school, what are my loan options?

Can you think of any other questions you’d like answered? If so, feel free to add them in the comments section. And for more information on the ins and outs of student loans, head over to Scholarships.com’s Financial Aid section.

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!